Hard-fought pension reform now law

All state public workers will immediately pay more toward their pensions and health premiums, under a package of changes signed into law Tuesday by Governor Christie.

Flanked by Democratic and Republican party leaders onstage at the Trenton War Memorial, Christie signed the single bill that overhauls retirement plans and health care options for the state's half-million employees.

Christie said the measure gave "an assurance" to public workers that overstretched state pensions and benefits funds would last long enough to support their retirement.

"Both of those promises are important, for us to keep faith with the people that we serve," Christie said.

Thousands of union members had protested hearings on the proposal. But Christie hammered out a deal with Democratic leaders Stephen Sweeney and Sheila Oliver.

"As I'm sure may rate as one of the understatements of my administration, this was not easy," Christie said.

About 50 mayors witnessed Christie's action, saying it saves towns billions of dollars in contributions that now will come from workers' pay-packets.

Hetty Rosenstein, New Jersey director of the Communications Workers of America, said the new deal for public workers amounted to a "pay cut."

"It is a downright awful day for the Democratic Party, which has abandoned the middle class and its own core values for the sake of a political backroom deal," she said in a statement.

E-mail: fletcher@northjersey.com

With the stroke of a pen Tuesday, public workers in New Jersey have lost the right to negotiate terms of their health care benefits until 2014. Some face later retirement ages, and current retirees lose cost-of-living adjustments. The bill:

* Makes employees contribute to health premiums in increments that are adjusted by salary range and ramped up over time. Those earning less than $20,000 contribute 0.9 percent of premiums in their first year, going up to 3.5 percent by year four. Workers earning more than $140,000, the highest bracket, pay 8.8 percent in year one and 35 percent in year four.

* Increases pension contributions by teachers and most state workers to 6.5 percent of base salary, a 1 percentage point hike. Over seven years that would rise to 7.5 percent.

* Immediately bumps contributions by judges over seven years to 12 percent, by police and fire to 10 percent and by state troopers to 9 percent.

* Raises retirement ages for teachers and public workers from 62 to 65, and increases penalty for early retirement to 3 percent per year.

* Makes most workers eligible for special retirement after 30 years of service, and makes police and firefighters eligible for special retirement at age 65 with 30 years or age 60 with 25 years.